But it did mark a strong rebound in sales during the ongoing coronavirus pandemic.
Counterpoint research director Jeff Fieldhack said: “The third quarter saw a good rebound in sales due to a few key OEMs outperforming the market despite the ongoing COVID-19 pandemic.
"Apple and Samsung both registered year-on-year growth in an otherwise declining market. Among operators, T-Mobile had an outstanding quarter, beating expectations for net additions. AT&T and Verizon also registered positive net-addition growth.
"But since store traffic is still down compared to last year, all major channels are also improving their online ordering and support systems. We believe that more than 20% of all sales are now coming from online orders.
"For the upcoming holiday season and iPhone 12 Pro Max and iPhone 12 Mini launch, we expect this percentage to eclipse 40%.”
But Fieldhack added that while there were some positive signs, the unemployment numbers in the US were still very big and Congress was yet to approve any new stimulus bill.
"July was a strong month for smartphone sales due to a combination of pent-up demand and remaining stimulus money fuelling growth," he added. "However, both August and September saw month-on-month declines, resulting in an overall 6% year-on-year decline.”
Senior analyst Hanish Bhatia said the iPhone 11 remained the top selling device for the quarter. "It has remained the top seller for four consecutive quarters due to its US$699 (A$960) price point hitting the sweet spot for many consumers.
"The iPhone 11 has also been on an almost continuous promotion, often sold for $0 or $5 with eligible trade-ins within postpaid channels. The iPhone SE and iPhone 11 Pro Max were the number two and three top sellers.”
Looking ahead to the final quarter of 2020, research analyst Maurice Klaehne said while Apple had done a good job in maintaining momentum, its sales had slowed down in September as postpaid consumers were waiting for either new 5G devices or cost-eroded iPhones.
"The iPhone 12 launches in October and November will likely help Apple maintain this positive growth in Q4 as carriers are heavily promoting both port-in and upgrade deals," he said.
"Early sales feedback indicates that Apple is moving a large base of customers over to the iPhone 12 series, with stronger sales year-on-year.
"Samsung is also preparing for the Q4 holiday season with a higher memory variant edition of the Galaxy S20 FE, while continuously promoting its A-series and Note 20 line-up.
"Against the backdrop of a fresh wave of COVID-19 cases, we are seeing more purchases through online channels, which has greatly helped maintain smartphone sales.”
Graphic: courtesy Counterpoint Research
